Is the market trending up, trending down, or running in a range? That's a question that is relevant across multiple time frames. In recent posts, I've emphasized intraday measures of trending, such as NYSE TICK, Market Delta, and TICKI, which capture short-term sentiment. But how about trend measures at longer time frames?
In my morning Twitter posts (follow here), I track several measures of market momentum and strength that can illuminate short- to intermediate-term trending. These include the number of stocks making 20-day highs vs. lows across the NYSE, NASDAQ, and ASE; the Demand/Supply Index of the number of stocks closing above vs. below the volatility envelopes surrounding their moving averages; the number of stocks in my basket closing in uptrends, neutral, and downtrends; and the number of listed stocks trading above their 20-day moving averages.
Here's my post for this morning:
If you compare the entry to yesterday's entry, you can see weakening day over day. You can also see from the above that we've moved from a largely neutral trending mode to a downtrend. These figures can provide a day over day perspective that helps traders frame larger timeframe ideas.